Chinese investors are eyeing the Mount Gambier district to build possible new processing facilities as their country’s insatiable appetite for dairy products continues to soar.
SA DairyFarmers Association president David Basham said he had received a number of inquiries from Chinese business officials about investing in the region.
“They are more than just tyrekickers, there is enormous interest,” Mr Basham said.
“There is a possibility we could see a new factory established in the South East.”
While some investors were just looking around, he said others were serious and looking at building factories, buying properties or pouring money into established dairies.
Mr Basham said the Chinese market was looking for high quality infant formula, fresh milk, UHT and dairy products.
He said there was potential to airfreight fresh milk to China.
The dairy sector leader said a health scare linked to infant formula in China had consumers in the country wary of contaminated products produced in their own country.
“The Chinese are looking for food safety following scares over infant formula.”
A number of groups had visited the region in the past six months and more are scheduled to arrive next month.
“There is certainly a fair bit of interest, they are looking at possible investments,” he said.
Mr Basham said Chinese investors had also flagged converting broadacre farms to dairy operations.
While investors had toured other regions in the state, he said the Limestone Coast was particularly in the Chinese sector’s radar because of its large dairy farms and pristine dairy environment.
But Mr Basham said investors needed to crunch the numbers to ensure any investment was viable.
“Investors are looking all over Australia, including Queensland, Victoria and New South Wales,” he said.
The dairy chief said the SA Government was already trying to clear possible red tape to encourage investments.
Mr Basham said new investment would not only underpin the Limestone Coast’s dairy sector but also would create new jobs.
“There is a lot of opportunity for the South East, particularly converting nondairy farms to dairy operations,” he said.
“There are already a number of dairy farms on the market in the Mount Gambier district.”
Source: The Border Watch